Kevin,
Guess what, Today they had Joe Lanza himself from "Indian Wells Inv" corp on that inside wall street radio show to talk about Xecom corp.
I took notes, remember I am a physician, not an investment person in any way, so I did the best I could to interpret what the hell he was talking about, so here goes:
It seems that Mr. Lanza has 3.8 million of his own money invested in this stock. He is a shareholder who claims to be intimately involved with the company. (my respect level for Dan on this thread has changed completely, Dan I will no longer pick on your spelling).
Anyway, He talked about the sprint contract. And claims the following;
27 bases are actually up and going.
50,000 lines are up and going.
11,000 troopers are signed on.
Sprint gave guarantee to Xecom that 30-35 dollars per soldier will be paid to Xecom whether the soldier uses the service or not.
By March 1997 they expect 1 million in revenues from this.
For fiscal 1997 they expect 20 to 25 million in revenues at a 24% margin (I think this is overhead, If I am wrong please explain).
They state that they expect all this to translate to 5-6 million in earnings for fiscal 1997 "when all the dust settles".
He also says that the AAFES contract with sprint represents 120 forts and they expect to get up and going about 40 of them per year. By the end of this year will be about 32-33 up and going, By the end of next year will be up to 75 of them up and going and so on ,and so on.
He says recently 30% of the company has been sold short by the market and thats part of the reason for the stock price drop.
He also talked about the management problems that they have had recently, but states that, since Casey and Prior have come aboard, in the last 40 days they have fixed all the management problems.
He also states that by the end of December they expect to have 25,000 soldiers signed up for service.
He also gives his 800 number for anyone to call.
Joe Lanza 800-862-1796
Like I stated above, I dont know completely what to make of all this.
Since I am down so much on paper right now with this company, I have no choice but to stick it out. My feelings for the long term are still good though. Any opinions would be appreciated. From you, Ram if your still listening, Dan, whomever.
Dave |
